- A-Z
- Jena Economic Resea...
- Volume 4
- Interbank Lending a...
- Angeblicher Autor(in)
- Erschienen
- 11. Oktober 2010
- Nummer des Discussion-Papers
-
2010-070
- Schlagwort(e)
-
balance sheet
banking firm
borrowed reserves
central banking
interbank market
liquidity
transmission
- Zusammenfsg.
-
The paper presents a simple model of banking behavior where portfolio, liquidity, and liability management determine simultaneously the demand and supply of borrowed reserves on the interbank market. As the central bank is one player in this market due to its refinancing policy, it is able to determine the interest rate and henceforth the residual demand for central bank loans. Comparative static analysis shows how external or monetary policy shocks affect the behavior on the interbank market, the volume as well as the structure of the bank’s balance sheet. It turns out that the banking firm behavior is non-linear and partially non-monotonous, indicating that the transmission of monetary measures is more complex when endogeneous banking behavior is taken into account.
- article pub. typess JER
- Research article
- article languages JER
- Englisch
- JEL-Classification for JER
- E43 - Determination of Interest Rates; Term Structure of Interest Rates ; E58 - Central Banks and Their Policies ; G21 - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages